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Post on 13-Jan-2015

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An overview of Langley FCU's savings program for low-income savers.

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  • 1. Brett T. Noll Senior VP/Chief Marketing Officer

2. Background

  • Launched Langley Saves in April 2006
  • Partnered with the America Saves Program through the Consumer Federation of America
  • LFCU becomes 1 stcredit union in the country with a Saves program
  • Supported the Military Saves campaigns

3. What is Langley Saves?

  • Initially, a free savings accounts with benefits:
    • Free advice/coaching from a financial counselor
    • Free seminars by financial experts on topics such as credit scoring, debt repayment, homeownership, and retirement planning
    • Free subscription toAmerica Savesquarterly newsletter
    • Access to free branded Langley Saves website for financial tips and advice ( langleysaves.org )
  • Member agrees to save a set amount on a regular basis anywhere

4. The change to an Upside Down savings account: Example of this dividend structure: If you have $3,000 on deposit, you'll earn the Tier 1 APY on the first $500, the Tier 2 APY on the next $2,000 (the amount greater than $500 but not exceeding $2,500), and the Tier 3 APY on the remaining amount (the amount greater than $2,500).>$2,500 2.00% 2.02% Tier 3 * Annual Percentage Yield (APY). ** The dividend rate and annual percentage yield are the prospective rates and yields that the credit union anticipates paying for the applicable period. The dividend rate may change after the account is opened.>$500-$2,500 3.00% 3.03% Tier 2 $0-$500 5.00% 5.10% Tier 1 Minimum to Earn APY* Dividend Rate** APY** Tier Langley Saves Minimum to open: $5 5. Why the change?

  • Kids not learning about dividends
  • Not enough people showing interest

6. Results:

  • Since we went upside down in April 2008:
    • 257 accounts with an average of $3,847 for $988,679
  • Total since May 2006:
    • 850 accounts with an average of $3,014 on deposit for a total of $2,561,900
  • 704 members have less than $1,000 on deposit
  • 593 have $500 or less
  • 176 are 18 years old or younger
  • 109 of those kids joined in the last 2 months!

7. 8. Building Your Brand

  • Financial Counseling
  • CreditBuilder
  • QuickCash
  • In-School savings programs
  • Teacher mini-grants
  • Member Education
  • FLIP
  • Constellation Club

9. Thank You!